Public Finance Management

For promoting good governance and fiscal transparency, the legislature’s active engagement in PFM is essential. When fiscal policies and medium term budgetary objectives are debated in the legislature, budget strategies and priorities are owned more widely. Traditionally, the role of the legislature in the budget process has been to review and debate the executive’s draft budget (including its revenue estimates and spending plans) and to authorise spending to implement the annual budget plan. Legislatures also review budget execution and in Kenya, they have now taken on much added responsibilities in this process. This course aims at equipping the participants with the nature of Kenya’s enhanced role and centrality of the legislature in the budget process as espoused in the Constitution and the PFMA both at the national and county governments.

This unit is specifically designed for Members of Parliament, Senators and Members of County Assembly and their staff who are responsible for matters of public finance in their respective houses.

The module focuses on the tools such as the expectations of government procurement policy to ensure trade agreements are met as efficiently as possible; the risks to the general public from inappropriate procurement practices and decisions are minimised; and the right goods and services are acquired with the best value for money and made available at the right place in a timely manner. The Procurement module aims at helping all participants in public procurement to comply with the legal and regulatory framework comprising of the Procurement Law, Regulations, this Module, Standard Bidding Documents and all circulars issued by the Public Procurement Oversight Authority (PPOA). While not specifically designed to serve as a training manual, a number of pedagogical considerations were taken into account in its design, and so it should also serve as a useful tool for learning about Kenya’s Public Procurement systems and procedures. The consistent and diligent application of the guidelines and principles presented in this Manual should substantially curb both the perception and the actual occurrence of corruption in public procurement in Kenya. Further, it will increase the confidence that potential as well as active vendors have in the execution of procurement procedures. As a consequence of which will lead to a wider participation in tenders with subsequent improvements in the effectiveness of competition. The upshot of which will be a substantial positive impact on the achievement of value for money and on the overall PFM objectives of fiscal discipline and on the efficient delivery of service.

The Constitution of Kenya places considerable obligation on PFM on the legislatures at the national and county level. Both the national assembly and the county assemblies have to approve all expenditure decisions that their respective executives implement besides providing oversight on how resources are utilised. To carry out this mandate effectively both assemblies require competent fiscal analysis skills and support. This entails research, analysis and communication of findings in a way that aids the members of parliament and members of county assemblies make proper decisions.